DB Companies, Inc. Files for Chapter 11 Reorganization.Business Editors PAWTUCKET, R.I.--(BUSINESS WIRE)--June 3, 2004 DB Companies, Inc. ("DB" or the "Company") announced today that the Company and its four active subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U. S. Bankruptcy Code. DB will continue to operate its business while in Chapter 11. The petitions were filed in U. S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. in Wilmington, Delaware on June 2, 2004. In consultation with its financial advisors, the Company has concluded that the best way to maximize value for its stakeholders is to pursue a sale of its assets, principally through a planned public auction of its convenience stores and gas stations. The Company filed under Chapter 11 to provide an orderly means to conduct the sale process and to distribute the sale proceeds to the Company's stakeholders. Under Chapter 11, a company is protected from its creditors while it continues to operate its business and negotiates a repayment plan. DB Companies also announced that, to fund its restructuring and continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , the Company had cash collateral of $1.7 million as of the bankruptcy filing. The Company has requested the Court for authorization to use the cash collateral to pay vendors, suppliers and other business partners under normal terms for goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. they provide during the reorganization process. In addition, DB Companies will pay its employees in the usual manner and it expects that their medical, dental, life insurance, disability, and other benefits will continue without disruption. In conjunction with the Company's bankruptcy filing, Mr. Robert Duffy has been elected by the Company's Board of Directors to serve as the Company's Chief Restructuring Officer during the pendency Pend´en`cy n. 1. The quality or state of being pendent or suspended. 2. The quality or state of being undecided, or in continuance; suspense; as, the pendency of a suit s>. of the Chapter 11 proceeding. Mr. Duffy, 41, is currently a Senior Managing Director at FTI FTI Free thyroxine index, see there Consulting (NYSE NYSE See: New York Stock Exchange : FCN FCN First Coast News (Florida) FCN Function FCN Federation of Canadian Naturists FCN Fox Cable Networks FCN Free Core Nutation FCN Federal Communicators Network FCN Fußball Club Nürnberg (Germany) - News) and has been working with the Company during its restructuring process. Prior to joining FTI in September 2002, Mr. Duffy was a Partner in the Business Recovery Services Practice of PricewaterhouseCoopers. Mr. Duffy has over twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of relevant business experience, including over sixteen years of experience in advising companies as well as their creditor constituencies in both financial and operational restructurings. "We very much appreciate the support we've received from our vendors during this difficult period," said Arthur J. DeBlois, III, the Company's Chief Executive Officer. "The Company believes that the planned public auction will maximize the value for all stakeholders." The Company operates and franchises a regional chain of "DB Mart" convenience stores and gas stations in Connecticut, Massachusetts, Rhode Island Rhode Island, island, United States Rhode Island, island, 15 mi (24 km) long and 5 mi (8 km) wide, S R.I., at the entrance to Narragansett Bay. It is the largest island in the state, with steep cliffs and excellent beaches. , and the Hudson Valley region of New York. Of the Company's 149 locations, 72 of the stores are operated directly by the Company and 77 are franchised to local operators. The Company also conducts a wholesale operation in motor fuels. The Company employs approximately 570 people and had 2003 revenues of $176 million. |
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